Close my business account to stop a mca merchant cash advance? If you are considering it, it is usually the worst way to get out of a merchant cash advance.
Some companies such as debt settlement companies recommend doing so as part of their settlement process. Business owners should know that intentionally closing your business checking account is considered a default by many merchant cash advance companies and lenders.
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The following is what many debt settlement companies tell customers to do.

Sign a contract with the debt settlement company. The contract often allows the debt settlement company to represent your business in communications with lenders and mca merchant cash advance companies.

Pay the debt settlement company to start the process.

Close your business checking account per the instructions or advice of the debt settlement company

Allow the debt settlement company to continue to represent you in settlement talks.

There are several problems and possible severe consequences to closing your business checking account to stop paying cash advances or loans and signing a contract with a debt settlement company.

The lender can also consider this an intentional default or fraud.

The lender or mca company can file a certificate of judgement and may also be able to debit funds in other accounts you may have at the same bank or other banks

You may not be able to talk to the lenders or cash advance companies directly any more even if you want to. Language in the contract may not allow you to talk contact the funder directly

You may not have influence over the final settlement agreement.

The contract you sign take power and decisions out of your hands and puts much of it in the hands of the debt settlement companies.

Other options and alternatives to contracting with debt settlement companies and closing your business checking account

Contact the lenders directly and try to discuss your financial situation and reach an agreement with the lenders yourself.

Payoff the merchant cash advances with other loans if the balances are low enough

Discuss your financial situation with a business attorney

Filing bankruptcy

The advantage of some of these options in general is that they either show you are sincerely trying to work with your lenders to settle your debt, are forming a coherent strategy to do so, or have officially determined that you cannot pay. These also have advantages over closing your account.

Have you been told to close your business checking account to get out of an mca merchant cash advance? Don’t do it.

FAQ – Frequently asked questions.

Question: Why can’t I close my account? I don’t have the money. The merchant cash advance companies will overdraw my account. I have to close my account.
Answer: There are cases when the mca merchant cash advance companies or other lenders may overdraw your account too much and too severely in a few days. You may feel this is a reason you have to do something. This can be a very valid concern. Anticipate in advance your account being overdrawn.
You should know several days in advance that your account may be overdrawn. Look at alternatives. If it is too late and you know the daily payment will overdraw the account, consider contacting your bank and change your account to not pay any items that will overdraw the account.

Follow the steps on how to get approved for a small business loan. Have you have been declined for a small business loan, or declined for a business loan of another type? The steps below increase the chance of being approved for a small business loan.

How to get approved for a small business loan

Step 1 Review and leverage the strengths of your business when you apply for a business loan. Look at time in business, personal credit, business credit, revenues and business assets. Know that your strengths will go a long way in helping your business get approved.

Step 2 Contact lenders online and by phone. Review any listed approval criteria you can find or ask about.

Step 3 Look at the best matches between business loan programs and your business strengths, needs and time frame for funding.

Step 4 Apply for those programs that are the best match.

Step 5 If approved, review the terms and conditions to make sure your business can meet the requirements. If so, complete closing conditions to fund the transaction.

F.A.Q.’s, Frequently asked questions, comments and requests on how to get approved for a small business loan.

I do not like the business loan programs my business qualifies for. I do not like the type of business loan, the terms or the rates. How can I get the business loan program I want?

your customer profile DETERMINES the business loan programs IT QUALIFIES FOR. Evaluate and make a list of the programs your business is most likely to get approved for based on your company’s strengths and weaknesses. Pick a program from that list.

My business did not get approved for enough money. How can I get more, or how can I get it increased?

Ask the lender to increase the approval amount. the lender will sometimes increase the amount slightly just by asking. If your business has strengths that were not listed or provided at the time of application, give the lender any information that makes your application and request stronger. This includes previous years bank statements, tax returns, or additional owner information. It also includes existing contracts your business has that prove revenues you expect to generate in the future

I was declined for a small business loan. How do I get approved?

Follow the steps listed above to increase the chances of being approved. You can contact us to discuss small business loan approval best practices. We will review your profile with you and ALSO discuss the best options your business is most likely to get approved for.

I was declined for a small business loan for having revenues that are too low and for bad credit. How do I get approved?

Consider programs that can approve with lower business revenues or with bad credit.
There are programs available for businesses that have low revenues but Strong business assets or good credit.

Programs that focus on good credit or business assets often do not require significant revenue.

Information on how to get a soft pull business loan. Soft pull merchant cash advances also available.
What is a soft pull business loan? Definition of a soft pull: In general, a soft pull is when personal credit is pulled and checked but does not show as a credit inquiry and does not lower your credit score.

How to get a soft pull business loan

Step 1 When applying for any type of credit or funding, review the website to see if credit pulls will be a soft pull or hard pull. If it does not state such and you are interested in the service, call a representative and ask.

Step 2 Once credit will be pulled, ask if it will be a soft credit pull or a hard credit pull.

Step 3 Some lenders will review your information and can pre-approve you or make a pre-assessment without any credit being pulled. Ask for a pre-application review.

Step 4 When it is a soft credit pull and the lenders criteria matches your need, consider applying.

Step 5 If approved, review final terms and conditions. If acceptable, complete transaction.

I need a soft pull. Can you do that?

This will be a soft pull. When you apply tell the representative that you want or need to have a soft pull.

I have a recent credit report already. Can I just provide you a copy of my credit report and get a decision using the report I already have?

when your credit report is less than 30 days old, it can be used. We will get back to you with an assessment or pre-approval, after which you can decide to proceed with a full review and a soft pull can be done to try to make an offer.

I have to have a soft pull. The last company I used pulled my credit so many times. They were a broker. Can I get approved with just a soft pull?

You can get approved with just a soft pull. We will make sure it is a soft pull and not a hard pull. Tell us immediately you only want a soft pull and we can arrange for the credit pull to not affect or lower your credit score.
If a previous company ran your credit 5, 10 or more times, then we will keep help you keep your credit from taking more hits.
We will work with you step by step to make sure the process has the minimal affect on your credit and credit score.

Can you review my file before you pull credit or before you do do a soft pull?

Yes. We will review your file before credit is pulled and respond to you with either a pre-approval or assessment of your file. After the review, processing can be completed to try to make an offer or give an approval.
A free detailed review can be discussed with you before your file goes into underwriting.

F.A.Q.’s, Frequently asked questions, comments and requests.

“Need an mca merchant cash advance renewal with better rates”.
Also frequently requested:
“I want an mca merchant cash advance renewal with lower rates and better terms.”
Answer: Your business can get an mca merchant cash advance renewal with lower rates and longer terms by choosing one of several programs available here.
The same programs also offer mca merchant cash advance renewals with rates as low as 12% to 15% and up rate factors and longer terms if your business qualifies.
Click above to complete 15 second request form.

Steps to get a cash advance with lower rates. Stop paying the highest rates for an mca cash advance.

How low of a rate can I get?

The lowest rates Start at approximately 8% to 12% rate factor for the best credit, longest time in business and strongest cash flow. For most businesses, rates in the low teens and higher are the lowest rates for merchant cash advances.

My mca merchant cash advance rate is super high. How can I lower my rate right immediately? I need to get a lower payment today or by the end of the week.

Lower your mca merchant cash advance rate right now by paying it off with a lower rate advance. Use the funds from your lower rate advance to payoff the remaining balance on your new advance. This works especially well when the balance of your existing advance is low.

There are some merchant cash advances that are similar to and work like a line of credit. Your business can borrow, repay, and re-borrow over and over. With these programs, your business can repay before the financing is paid off. By repaying before your balance is $0 (zero), you are able to use the product like a business line of credit.

Can we get a business loan instead of an mca merchant cash advance?

Yes, for many program options, your business can get a business loan instead of an mca merchant cash advance. Business loans will require a higher personal credit bureau score, usually around 575 to 600 or higher. A regular business loan may also require a longer time in business of longer than 1 year or longer than 2 years.

Yes, your business can get a business loan instead of a merchant cash advance if you qualify. Like the line of credit option, a regular business loan usually requires at least 1 year or more time in business and at least a 575 – 600 credit bureau score. Contact us for details.

Decide how much money your business needs. Then calculate how much the business can afford to pay each day. For a 3rd position advance, figure out how much is the maximum you can afford per day and the total your business can pay for cash advances overall.

Apply for the cash advance program that best matches your business cash flow.

If approved, review all closing documentation and requirements. If needed have a specialist review the contracts and return completed contracts and all documentation for funding. Complete merchant funding call with the funder.
Funds are deposited into your business checking account the same day or next day.

Does your business need another cash advance?

F.A.Q.’s, Frequently asked questions, comments and requests.

My business needs capital. We already have 2 merchant cash advances but need more capital. Can our business get another cash advance? We need a 3d position merchant cash advance.
Answer: yes. Your business can get another merchant cash advance. We will also assist you in making sure your business has the cash flow to handle and pay the cash advance. If so, your business will be made an offer.

“What are the terms? How long can we get the cash advance for?”

Payments and terms can be between 60 and 180 days. The terms offered will depend on your business’ cash flow, and ability to handle the debt and repay.

Will the funder decline me because I already have cash advances?

No, the funder will not decline your business because you already have cash advances. The funder will review your cash flow and determine how much more funding your business can handle.

I want the maximum I can get. How do I know if the lender is offering the most I qualify for?

Your business will always get the highest offer it qualifies for. Whatever your business profile can be approved for, your business will receive that offer for funding. There are not any limitations on the program. You do not have to worry that you should have received more funding under another program. Your business will always get the maximum it qualifies for. Final offers will depend on the cash advance company’s guidelines.

Are there other programs available for funding instead of getting another advance?

Yes, there are several other programs that your business might qualify for instead of a cash advance. Some of those that many businesses might qualify for are listed below.

Accounts Receivables Financing is a type of financing through which your business can get paid now on invoices for payment that have already been sent. This works especially well if your business often has to wait 20, 30 or more days to get paid.
The cash flow of millions of businesses suffer because they are paid 2 to 6 weeks after issuing an invoice for payment instead of immediately after an invoice has been sent.

Real Estate Leaseback

Funding based on the real estate you own, commercial or residential. Take the equity out of Real Estate and also get a tax write off in many cases.

Step 1 Review your funding needs. Look at your cash flow. How much can you afford to repay per week or per day?

Step 2 Apply a funder with the best products matching your businesses’ needs, credit and time in business.

Step 3 If you are approved, look at the daily or weekly repayment and the mca or loan contract. If you agree, provide all the required closing documentation and complete the transaction. funds into your business checking account.

Step 4 Funds are deposited into your business checking account.

Are you looking for a second position merchant cash advance?

F.A.Q.’s, Frequently asked questions, comments and requests.

I want a 2nd position merchant cash advance with low rates. Do you offer
second positions that have longer terms?
Answer: yes. You can be approved for another mca cash advance position and get 1.19 rates if your business qualifies. If you already have a position now, you may be able to payoff your existing first position cash advance.

How do renewals work ?

Renewals are available at 50% and 75% paid down.

“What are the longest terms?”

Terms are usually a maximum of 360 day, but Options are available for 3, 4 and 5 years if your business qualifies.

More F.A.Q’s. frequently asked questions, requests and comments:

I have an existing merchant cash advance. Can I pay it off ?

your existing position can be Paid off if your balance is low. estimate the balances on your existing advances when applying.

How important is credit?

Credit is NOt the main factor. strength of cash flow is more important.

I need a low daily or weekly payment. I need my daily cash advance payment to be lower than it is now. Can I get a lower payment than I have now?

The lowest daily, weekly and monthly payments are available. terms as long as 24 months or longer are available to lower your payment.

What if I don’t qualify?

If your business does not qualify , there are other programs you may also qualify for to.

If a merchant cash advance cannot be obtained, a further option is also accounts receivables financing.

When your business has to wait more than 2 weeks to get paid on invoices but needs funding in one or two days, review accounts receivables financing. Get paid about 80% of the face value of the invoice immediately. Once the company you have invoiced pays, get the remainder less a 1% to 5% fee.

Asset based loan

Get funding for your business based on the assets. Assets can be real estate or certain types of equipment. Find out more

Review your funding requirements. Calculate how much you can afford to pay per day or per week.

Apply with a merchant cash advance company or funder that offers the best products that match your businesses’ cash flow, credit and time in business.

If your business is approved, review the daily or weekly repayment terms and the merchant contract. If you agree, submit all the required closing documentation and close transaction.

Receive funds into your business checking account.

Need a 1st position merchant cash advance?

F.A.Q.’s, Frequently asked questions, comments and requests.

I am looking for a 1st first position merchant cash advance. Do you offer a 1st first position with lower rates?
Answer: yes. You can be approved for a 1st first position and also get rates as low as 1.18. If you have an existing position now, another benefit is paying off your existing 1st first position cash advance. Buying out your existing 1st first position will mean you will still only have 1 merchant cash advance position after funding.

We may need funding again later. Can you help ?

Yes. Renew at 50% and 75% paid down.

“How long is the cash advance for?”

Terms are usually 60 days to 360 days. Options are available for 3, 4 and 5 years if your business qualifies.

More F.A.Q’s. frequently asked questions, requests and comments:

What if I have an existing merchant cash advance and also want to pay it off ?

If your balance is low enough your existing position can be Paid off. You will still have only one advance.

I only need funding now and do not want funding in the future. Can I get longer term ?

There are longer term programs between 1 year or 252 business days, 18 months or 378 business days, or 2 years and 504 business days available. Fast funding. 1 to 2 hour approvals and same day funding available in many cases.

Is credit important when applying for?

Credit is not a main factor. The company’s cash flow is more important.

I need a lower daily payment or a lower weekly payment. Can I get a lower daily payment on a first position cash advance?

Lower daily, weekly and monthly payments are available. Terms can also be extended up to 12 or 15 months or longer to lower your payment.

How can my payment be lowered?

Your payment can be lowered by buying out your 1st first position merchant cash advance. If the balance of your first position has been paid down more than 50%, then the 1st position can be paid out. A longer term of 12, 15 or 18 months can be approved and your daily payment will be lowered as much as 25% to 50%.

If I do not qualify, what other programs can my business be approved for?

If your business does not qualify for this program , there are other programs you may also qualify for to.

Accounts receivables financing
If a merchant cash advance cannot be obtained, a further option is also accounts receivables financing. When your business has to wait more than 2 weeks to get paid on invoices but needs funding in one or two days, review accounts receivables financing. Get paid about 75% of the face value of the invoice immediately. Once the company you have invoiced pays, get the remainder less a 1% to 4% fee.

Asset based loan
Get funding for your business based on the assets. Assets can be real estate or certain types of equipment. Find out more

Step 4 Contact qualifying companies and request their qualifying criteria. Match and prioritize your needs with company that meet your criteria and can qualify with.

Step 5 Once approved, review terms and contact. If accepted, provide all closing documentation and complete transaction.
Received funds for payroll into your business checking account.

F.A.Q.’s, Frequently asked questions, comments and requests.

Need money for payroll asap. Can you fund payroll today?
Answer: In many cases, yes. If you qualify and apply before 2 P.M., same day funding may be possible.

Get money for payroll same day or next day. Use the financing each time you need funds for payroll.

We may need money for payroll again. Can we use this financing in the future to financing payroll?

Yes. You can use the financing like a line of credit. You borrow, repay and reuse the line again.

“How long can we borrow the money for?”

Terms are usually 30 to 90 days. Options are available for longer term if your business qualifies.

How can you get money for payroll?

Find companies that offer company payroll financing.

Find out what their requirements are.
If qualified, apply.
Once approved, provide all closing documentation required.
Receive funds into your business checking account.

More F.A.Q’s. frequently asked questions:

What if I have 1099 contractors and are not official employees of the company?

Indicate this when applying. There are programs available to financing your employees if they are 1099 employees.

I only need payroll financing this time and do not expect to need it in the future. Can I get longer term payroll loan?

There are longer term programs if you believe your company will rarely need payroll financing in the future. Terms available are monthly and can be financed for as long as three to five years.

Is credit important when applying for payroll financing?

Credit is not a main factor in payroll financing. The strength of your business and cash flow of your business is more important.

If I do not qualify for payroll financing, are there other programs available?

If your business does not qualify for payroll financing, there are other programs you may qualify for to meet payroll.

These include the following:

Bank statement loans
Loans based on the cash flow of your business. If your business generates more than $7,500 per month in deposits and has more then 4 deposits per month.

Accounts receivables financing
If payroll financing cannot be obtained, another option is also accounts receivables financing. If your business is waiting more than 2 weeks to get paid on invoices and needs funding within one or two days, consider accounts receivables financing. Get paid approximately 75% of the face value of the invoice immediately. Once the company you have invoiced pays, get the remainder less a 1% to 4% fee.

We are struggling to meet payroll by the end of the week. Can you fund payroll by the end of the week?

Payroll funding can be provided by then end of the week. Apply now above.

F.A.Q.’s: Frequently asked questions, comments and concerns:

“Need money for product”. “How can I get money for product orders”
Answer: Work with a program that specializes in getting money to businesses for product orders. Many lenders do not offer this specific type of financing but may offer a financing product that is a bad fit for your need to get a business loan for product orders that you need asap.

Can I get a loan for product orders the same day?
Answer: Funding may not be available the same day. If approved, funding can take place within 2 or 3 business days. After your company has completed the job, you may qualify for accounts receivables financing.

Question:
What is looked at for product order financing?
Answer: Some of the main things that are looked at to qualify for product order financing include:
The quality of the company your business is providing product for.
The likelihood that the company your business is providing product for will pay after the product has been received.
The strength of your company. Does your company have the financial strength to withstand not being paid for 30 to 60 days after delivering the product?
Can you qualify for accounts receivables financing?
After product has been delivered, your company will send out an invoice. If the company that has received the invoice has a history of waiting 30 to 60 days to pay, then they will also be looked at to qualify for A/R financing.

How can I figure out if my business can afford an mca merchant cash advance? Calculate if your business can afford a business loan. If so, step by step instructions on how much of business loan or advance your business can afford. To get more information or apply for an advance safe for your business, begin below.

Can my business afford an mca merchant cash advance?

Take that figure and multiply it times .20. This is approximately the amount you should conservatively be taking for an mca merchant cash advance.

Contact mca companies and apply. If you are approved for more than your recommended safe amount, do not take more unless you are sure you can make the payments.

Close the cash advance and funds are deposited into your account.

How much of an advance can my business afford? Example, how to calculate:

Below is an example of how to estimate a conservative funding amount.

Look at your most recent (3) months business checking account statements. Find and add the amount of your total deposits. Most banks give you one amount and list it as “total deposits”. Some banks will also have a separate entry for electronic deposits. If your bank itemizes different deposit types, add them up. Example figures are below.
December total Deposits $25,000
January total Deposits = $15,000
February total deposits = $19,000

The lowest month is January at $15,000 in total deposits. Multiply $15,000 X .2 = $3,000. $3,000 is a safe and conservative amount.

A more aggressive amount is $15,000 times .5 = $7,500.

Figure out your daily payment. On average, the term of an mca merchant cash advance is approximately 6 months. For $3,000, your daily payment will be approximately $3,000 X 1.35 % (6 x 21) = $155.77 per business day. There are approximately 21 business days per month. The rate factor used here is 1.35.

If you can handle this payment for 6 months, you can close the transaction.

calculate how much of an mca merchant cash advance your business can afford. Get conservative and aggressive amounts.

Other factors that affect offer and approval amounts:

Depending upon other factors such as time in business, average daily balances and amount of revenues, the funder may offer a much larger business loan or advance. Your business may be able to handle a larger amount. The purpose here is to determine what is a conservative and safe amount.

More disposable income with higher deposits

Businesses with higher gross deposits can often afford a higher advance. This is because the same percentage of disposable income equals a higher dollar amount. If your business has fixed total expenses of $7,500 out of $10,000, then it has disposable income of $2,500.
When gross deposits are $100,000 and fixed expenses are $75,000, then disposable income is $25,000.
In the later case, a business will be able to handle a larger merchant cash advance, because their total gross deposits are higher.

Many businesses continue to take out merchant cash advances by renewing them once they are paid off. If your business is taking out a merchant cash advance for the first time, try a lower amount first to make sure your business has the cash flow needed and can handle it. If so, you can take out a larger amount on a second advance.

FAQ, Frequently asked questions:

I need an mca merchant cash advance payment I can handle and pay. I need a cash advance safe for my business. How can I get that?

Refer to the formula above to figure out how much of a payment your business can afford. Also consider how much that would be per month. When businesses takes out an mca merchant cash advance with a daily payment, they often do not calculate how much that will be per week and per month.

How can I get a business loan that I can pay? I do not want a cash advance to put me out of business

Refer to the affordability calculations above. Every business is different but you can estimate approximately how much your business can pay. Start out with gross revenues, then calculate an average % of gross deposits.